NEW YORK, Oct. 9, 2015 /PRNewswire/ -- HRG Group, Inc.
(NYSE: HRG) ("HRG" or the "Company") , a diversified holding
company focused on owning and acquiring businesses that it believes
can, in the long term, generate sustainable free cash flow or
attractive returns on investment, announced today that its
subsidiary, Compass Production Partners ("Compass"), has signed a
definitive agreement to sell its Holly, Waskom, and Danville assets
to Indigo Minerals for $160 million
in cash, subject to customary closing adjustments. The transaction
is expected to close in the current fiscal quarter with an
effective date of July 1, 2015.
Proceeds are expected to be used to reduce the borrowings
outstanding under Compass' credit facility.
"We are pleased to announce this transaction which will be
accretive in reducing Compass' borrowing base and further enhance
Compass' ability to execute its future business plans," said
Omar Asali, HRG's President and
Chief Executive Officer. "This transaction is reflective of the
high quality nature of these assets and prospectivity of the
Cotton Valley formation for
horizontal exploitation."
The properties sold include approximately 90,000 acres in
East Texas and North Louisiana and produce approximately net
34 Mmcfe per day of majority dry gas.
The transaction is subject to satisfactory completion of title
and environmental due diligence, as well as the satisfaction of
customary closing conditions and receipt of applicable approvals
and consents.
The foregoing summary does not purport to be a complete
description of the transaction and related agreements. Interested
parties should read HRG's other announcements and public filings
regarding this transaction and related agreements by reviewing
HRG's filings with the Securities and Exchange Commission
(www.sec.gov).
About the Company
HRG Group, Inc. (formerly "Harbinger
Group Inc.") is a diversified holding company focused on owning and
acquiring businesses that the Company believes can, in the long
term, generate sustainable free cash flow or attractive returns on
investment. The Company's principal operations are conducted
through businesses that: offer branded consumer products (such as
consumer batteries, residential locksets, residential builders'
hardware, faucets, shaving and grooming products, personal care
products, small household appliances, specialty pet supplies, lawn,
garden and home pest control products, personal insect repellents);
offer life insurance and annuity products; provide asset-backed
loans; and own energy assets. Although the Company intends to own
or seek to acquire controlling equity interests, the Company may
also make investments in debt instruments and hold minority equity
interests in companies. For more information, visit:
www.HRGgroup.com.
Forward-Looking Statements
"Safe Harbor" Statement
under the Private Securities Litigation Reform Act of 1995: This
press release contains, and certain oral statements made by our
representatives from time to time may contain, forward-looking
statements, including those statements regarding the completion of
the transaction described herein, any use of the proceeds thereof
or any other expected benefits from such transaction, expected
dividends from our subsidiaries, our or our subsidiaries' capital
needs and potential acquisitions, dispositions or other
transactions by us or our subsidiaries. Generally, forward-looking
statements include information concerning possible or assumed
future distributions from subsidiaries, other actions, events,
results, strategies and expectations and are identifiable by use of
the words "believes," "expects," "intends," "anticipates," "plans,"
"seeks," "estimates," "projects," "may," "will," "could," "might,"
or "continues" or similar expressions. Such forward-looking
statements are subject to risks and uncertainties that could cause
actual results, events and developments to differ materially from
those set forth in or implied by such statements. These statements
are based on the beliefs and assumptions of HRG's management and
the management of HRG's subsidiaries (including target businesses).
Factors that could cause actual results, events and developments to
differ include, without limitation: the ability of HRG's
subsidiaries (including, target businesses following their
acquisition) to generate sufficient net income and cash flows to
make upstream cash distributions; the decision of HRG subsidiaries'
boards to make upstream cash distributions, which is subject to
numerous factors such as restrictions contained in applicable
financing agreements, state and regulatory restrictions and other
relevant considerations as determined by the applicable board;
HRG's liquidity, which may be impacted by a variety of factors,
including the capital needs of HRG's current and future
subsidiaries; capital market conditions; commodity market
conditions; foreign exchange rates; HRG's and its subsidiaries'
ability to identify, pursue or complete any suitable future
acquisition or disposition opportunities, including realizing such
transaction's expected benefits, efficiencies/cost avoidance or
savings, income and margins, growth, economies of scale,
streamlined/combined operations, economic performance and
conditions to, and the timetable for, completing applicable
financial reporting requirements; litigation; potential and
contingent liabilities; management's plans; changes in regulations;
taxes; and the risks that may affect the performance of the
operating subsidiaries of HRG and those factors listed under the
caption "Risk Factors" in HRG's most recent Annual Report on Form
10-K and Quarterly Reports on Form 10-Q, filed with the Securities
and Exchange Commission. All forward-looking statements described
herein are qualified by these cautionary statements and there can
be no assurance that the actual results, events or developments
referenced herein will occur or be realized. HRG does not undertake
any obligation to update or revise forward-looking statements to
reflect changed assumptions, the occurrence of unanticipated events
or changes to future operation results, except as required by
law.
Investors and Media:
HRG Group
James Hart, 212-906-8560
Investor Relations
investorrelations@HRGgroup.com
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SOURCE HRG Group, Inc.